Rant About ItRant About ItThe purpose of this blog is to educate every reader including me about trading in stocks by understanding the fundamentals and techicals behind it Articles
J Crew, OmniVision Guides Higher, But Procter & Gamble Guides Below Estimat
2009-05-30 00:00:00 Positive GuidanceOmniVision Technologies Guides Above EstimatesOmniVision Technologies Inc. (OVTI) said it expects a first quarter non-GAAP loss of $0.16 to $0.07 per share on revenue of $90.0 million to $100.0 million. The current consensus estimate is a loss of $0.23 per share on revenue of $73.4 million for the quarter ending July 31, 2009.J. Crew Guides Above EstimatesJ. Crew Group Inc. (JCG) said it expects second quarter earnings of $0.08 to $0.12 per share. The current consensus estimate is for a loss of $0.02 per share for the quarter ending July 31, 2009.Inline GuidanceMarvell Technology Guides Revenue Above EstimatesMarvell Technology Group Ltd. (MRVL) said during its conference call it expects second quarter earnings of $0.07 to $0.13 per share revenue of $540.0 million to $580.0 million. The current consensus estimate earnings of $0.07 per share on is revenue of $522.3 million for the quarter ending July 31, 2009.Jackson Hewitt Tax Service Lowers GuidanceJackson Hewitt T... More About: Earnings , Gamble , Higher , Procter
Consumer Burrowing Plunged At Fastest Pace In 18 Years
2009-05-07 23:12:00 Consumer borrowing plunged in March at the fastest pace in 18 years as Americans put away their credit cards and hoarded cash amid the worst recession in decades.The Federal Reserve said Thursday that consumer borrowing dropped 5.2 percent in March, the biggest decline since an 8.1 percent fall in December 1990.In dollar terms, consumer borrowing plunged by $11.1 billion. That's the largest dollar amount on records dating to 1943, and more than three times the $3.5 billion drop that economists expected.The borrowing category that includes credit cards dropped 6.8 percent in March after a 12.1 percent plunge in February. The category that includes auto loans fell 4.2 percent after rising by 1.2 percent in February.Is that good news or bad news for the economy ? Short term NO, but long term YES.Goods news in long term, since savings rate goes up and Americans build true wealth rather than living on credit day in and day out.Bad news in short term, since company profits go down, which... More About: Economy , Consumer , Years , Pace
Trade Lessons To Find Breakdowns & Breakouts
2009-04-28 19:00:00 BreitBurn Energy Partners L.P. (BBEP) is an independent oil and gas partnership focused on the acquisition, exploitation and development of oil and gas properties in the United States. The Company?s assets consist primarily of producing and non-producing crude oil and natural gas reserves located in the Antrim Shale in Michigan, the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Sunniland Trend in Florida, the New Albany Shale in Indiana and Kentucky, and the Permian Basin in West Texas.I went long BBEP @6.02 once the $6.00 resistance was broken. Missed the top price, but made good 4.50% return.Trade Lesson: Buy breakouts.Walter Industries, Inc. (WLT) through its operating segments offers a line of products and services, including coal and natural gas, metallurgical coke, mortgage financing and home construction.I went long WLT @23.02 once the $23.00 resistance was broken. Missed the top price, but made good 3.95% return.Trade Lesson: B... More About: Find , Charts , Technical Analysis , Lessons
Earnings Review: Seagate Tech, Talbots, SPX....
2009-04-14 09:53:00 Positive GuidanceFederal Signal (FSS) said it now expects first quarter earnings of $0.01 to $0.03 per share. The company previously said it expected a loss for the quarter and the current consensus estimate is a loss of $0.07 per share for the quarter ending March 31, 2009.Dress Barn Guides Above EstimatesDress Barn Inc. (DBRN) said it expects third quarter earnings of $0.30 to $0.32 per share. The current consensus earnings estimate is $0.20 per share for the quarter ending April 30, 2009.Seagate Tech nology Ups Revenue GuidanceSeagate Technology (STX) said it now expects fiscal third quarter revenue of $2.10 billion. The company's previous guidance was revenue of $1.60 billion to $2.00 billion and the consensus revenue estimate is $1.85 billion for the quarter ended April 3, 2009. The company also said it expects fiscal fourth quarter revenue of $1.90 billion to $2.20 billion. The current consensus estimate is revenue of $1.84 billion for the quarter ending June 30, 2009.Kona Gri... More About: Review , Earnings
Bank Earnings Will Decide The Trend To Follow
2009-04-14 02:28:00 What?s Happening In The Market Now..The market opened lower this morning ahead of key earnings expected later in the week.Also weighing on stocks is a potential bankruptcy filing from General Motors (GM). The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday, citing an unnamed source.Investors will get a number of earnings results throughout the week, including reports from key financial firms. Financial companies had been among the hardest hit by the economic downturn and credit crisis, but they have also helped lead a rally over the past five weeks. Goldman Sachs earns $1.66B in 1st-quarter, surpassing Wall Street's estimates. Oil company shares could come under pressure, after Chevron (CVX) said it expects its first quarter 2009 earnings to be sharply lower than in the fourth quarter of 2008. Oil pri... More About: Earnings , Bank , Trend
How To Profit From Support Breakdowns And Resistance Breakthroughs
2009-03-26 05:17:00 Whole Foods Market, Inc. (WFMI) owns and operates a chain of natural and organic foods supermarket. As of September 30, 2008, the Company operated 275 stores organized into 11 geographic operating regions, 264 stores in 38 United States of America states and the District of Columbia; six stores in Canada, and five stores in the United KingdomThere were 4 trading alerts today for WFMI. These were based on breakdown of supports and breakout of resistances. As mentioned in the chart, once key support levels are broken down, the stock keeps moving lower. The rationale behind this is pretty simple. Most traders place their stop loss below key support levels. If these support levels are broken, the stop losses get triggered putting more pressure on the stock. WFMI saw a continous sell-off after the morning spike. After every key support was broken, sellers poured in, taking the stock lower and lower. (Breaking down from $18.20 to $16.80 levels)Eventually in the last half hour, bulls took ... More About: Profit , Support , Charts , Technical Analysis , Resistance
Fed Will Pump 1 Trillion Into The Economy: Bye Bye Dollar
2009-03-20 04:19:00 What?s Happening In The Market Now..Stocks moved higher at the open this morning after a report showed new unemployment claims dropped last week, then slid back in morning trading.The Federal Reserve, yesterday, said it would pump more than $1 trillion into the economy. The plans include the purchase of long-term Treasury bonds.The Labor Department said the number of initial requests for unemployment insurance dropped to a seasonally adjusted 646,000 from the previous week's revised figure of 658,000, better than economists' expectations.The House voted today on a bill that would levy a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.The dollar continued its weakening trend, as the euro spiked to a 10-week high and the U.S. currency sank to a three-week low against the yen.The dollar skid pushed the price of oil up sharply with oil heading over $50 a barrel, reaching the ... More About: Economy , Dollar
Stock Picks With Dow Closing At 6.5K
2009-03-10 10:35:00 RGR started rallying in late Feb and has not looked back except for one negative day. Is this strong trend coming to an end ? Buying volume is seeing a dip and that could be early signs of reversal. Keep watching for potential short entry.LFT took off after positive earnings. LFT has struggled to break and stay above $18.00 for the second time. This could provide some scalping on the short side. Once LFT breaks down, it has no strong support till $16.35. This should provide some decent short gains.REST OF MY STOCK PICKS ARE LISTED...HERE More About: Stock Picks , Stock , Charts , Technical Analysis
Intraday Resistance & Support Provide Trading Opportunities
2009-03-10 01:24:00 Smith & Wesson Holding Corporation (SWHC) is a manufacturer and exporter of firearms. The Company manufactures an array of pistols, revolvers, tactical rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, protection focused individuals, law enforcement agencies and officers, and military agencies in the United States and worldwide.SWHC was a perfect example of how support and resistance work. SWHC is one stock that have spiked all the way from $2.00 in Feb 09 to $4.00 in March 09, giving investors 100% returns. For a swing trade SWHC is definitely in an overbought category and can see some reversal soon. However for a day trade, SWHC provides an excellent opportunity to go long in the morning and go short in the afternoon.No matter what experts say, any important round number always provides resistance and support.... More About: Trading , Support , Charts , Technical Analysis , Opportunities
Job Losses Hit 25 Year High
2009-03-07 00:33:00 The U.S. unemployment rate rose to a 25-year high of 8.1 percent in February as employers, buckling under the strain of a severe recession, axed 651,000 jobs, government data showed on Friday. Adding to the gloom, a combined 161,000 more jobs were lost in January and December than previously believed, the U.S. Labor Department said in its monthly nonfarm payrolls report. Since the recession started in December 2007, the economy has shed 4.4 million jobs, with more than half of that number lost in the last four months alone. A total of 12.5 million people were unemployed in February, the Labor Department said.Consumer borrowing rose unexpectedly in January after three months of declines, but the small increase did not shake economists' views that borrowing will remain weak this year as mass layoffs persist amid the recession. The Federal Reserve said Friday that borrowing increased at an annual rate of $1.76 billion in the first month of the year. Economists expected borrowing to de... More About: Apple , Gold , Employment , High , Losses
Why Stop Loss Should Be Part Of Your Trade
2008-05-29 02:34:00 I played MR again, trying to short it below $40, since it was a pivot resistance point. Confident from my previous short attempt i was hoping for a repeat. I shorted 600 MR @ $39.99. This was exactly the same trade i played earlier. However the only difference this time was I decided to short more of MR if it went up, due to the fact that it wont hold 40+ for long. (since it couldn't hold it in the morning too). My next short entry was 600 MR @ $40.29 (making my average 1200 MR @ $40.14). This plan turned out to be a horrible trade because that meant I didn't setup a stop loss. With no stop loss in play i was left vulnerable to any spike up. This is exactly what happened. In the last hour of trading MR took a bounce from $40.10 to $40.82 leaving me angry at myself for not putting a stop loss and cutting short my loss.At this point I had to 2 options, to hold my short overnight and hope for a drop or to cut my losses and run. Overnight positions are very tricky and can sometime lea... More About: Stock Picks , Trade , Traders , Stop , Loss
Some Trades Work Just Awesome
2008-05-29 02:20:00 Pacific Sunwear of California, Inc. (PSUN) played out exactly the way I had planned it. It feels awesome when it does.I sold PSUN at $9.51 with a profit of 6.5% (my entry point was $8.93) in 2 trading days.Woohoo.... More About: Stock Picks , Awesome , Work , Traders
When Is It Not A Good Time To Short
2008-05-29 01:48:00 Chico's FAS Inc. (CHS), a specialty retailer of casual to dressy clothing and accessories, reported lower first quarter profit due to a decline in sales. The company continues to expect negative comparable store sales and lower earnings for the first half of 2008. Net income posted by the company plunged to $12.7 million, or $0.07 per share, for the first quarter from $47.2 million, or $0.27 per share, a year ago but beat analysts' estimate of $0.06 per share. Net sales for the quarter declined 9.6% to $409.6 million from $453.1 million reported for the same period last year, reflecting a 17.5% decline in comparable store sales. Fifteen analysts estimated revenues of $416.58 million. For the first half of 2008, the company continues to expect negative comparable store sales and expects to have lower earnings than the first half of 2007.The fact that the company beat estimates made the stock spike more than 12%. However i believe this is a bogus rally. That said, shorting on the fi... More About: Stock Picks , Time , Traders , Good , Short
WatchList For 28th May 2008
2008-05-28 08:51:00 Watchlist for Long EntryWatchlist for Short Entry More About: Stock Picks , Traders , 2008
Why Am I Playing Lousy Retailer
2008-05-28 03:10:00 Pacific Sunwear of California, Inc. (PSUN) is a specialty retailer focused on action-sport inspired casual apparel, accessories and footwear designed to meet the needs of active teens and young adults.I am playing PSUN, purely on technicals. PSUN formed a bottom during the month of Jan 08 at $8.87. After a lousy earnings PSUN hit $8.82 again on 23rd May 08. This could be a pivot support point and possibility of a double bottom. I might be completely wrong and the trade might turn out a horrible one. But in terms of risk/reward it looks lucrative even though the fundamentals are against it. Fundamentally PSUN posted a wider first-quarter loss of $37.1 million, or 53 cents per share on lower sales and a charge related to the closure of a facility. However the loss was in line with analysts' predictions. Technically PSUN is oversold and the following indicators show that.Current RSI = 24.46Current MFI = 14.58Current Slow Stochastics = 4.59Entry Price = $8.93Exit Price = $9.43 (Meanin... More About: Retail , Support , Traders , Technical Analysis , Retailer
Why You Need To Be Patient With Your Trade
2008-05-28 02:52:00 Trading takes alot of discipline. Good traders always make a set of trading rules and stick to it. They have already calculated their exit positions even before trade entry. Planned trades always work out better than no-exit strategy trades. That said, most traders always end up breaking their own trading rules. More often traders will lose money or make a smaller profit by breaking those trading rules.One key ingredient to be a successful trader is to be patient. Patience pays off sooner or later. I didn't bank much profit on the following trade because i broke my own rule and lost my patience.Mindray Medical International Limited is developer, manufacturer and marketer of medical devices in China. The ticker symbol is MR.As you see, MR has strong resistance at $40. Knowing this fact, I entered a short position at 39.95. (1000 MR short @ 39.95). I expected it to crack back to lower 39's by afternoon. However from 11.30 am to 2.30 pm MR was trading absolutely flat making it an ext... More About: Trade , Traders , Patient
Bearish Engulfing Pattern
2008-05-23 07:41:00 A chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one. As implied by its name, a bearish engulfing pattern may provide an indication of a future bearish trend. This type of pattern usually accompanies an uptrend in a security, possibly signaling a peak or slowdown in its advancement. However, whenever a trader analyzes any candlestick pattern, it's important for him or her, before making any decisions, to consider the prices of the days that precede and follow the formation of the pattern.Lets take a look at few current charts to predict future movement.Cardiome Pharma Corp. (CRME) is a drug research and development company focused on developing drugs to treat or prevent cardiovascular diseases. Bearish engulfing pattern is formed on this stock today. This makes CRME a short-term short candidate.Current Price: 9.20Target Price: 8.80Packaging Corp... More About: Traders , Technical Analysis , Pattern
China Mobile: A Stock With Alot Of Upside
2008-04-23 08:54:00 IntroductionChina Mobile Limited (CHL) is an investment holding company and a mobile services provider in China. Its principal activity is providing mobile telecommunications and related services in 31 provinces, autonomous regions and directly administered municipalities in Mainland China and Hong Kong. As of December 31, 2007, the total number of subscribers reached 369.339 million. The Company?s businesses can be primarily divided into voice business and new businesses.Recent Earnings Report China Mobile Ltd., the country's biggest mobile phone carrier, said Monday its first-quarter profits surged while China Telecom Ltd., the country's main fixed-line carrier, reported essentially flat earnings, reflecting a shift in consumer tastes.China has the world's biggest population of mobile users, with some 520 million accounts, and the government says that number should reach 600 million soon. China Mobile said profits for the three months ending March 31 rose 37.2 percent over the... More About: Stock , Upside
Q1 2008 Earning Season - Part 1
2008-04-23 07:46:00 Yahoo! Reaffirms Revenue GuidanceYahoo! (YHOO) said it expects second quarter revenue of $1.73 billion to $1.93 billion and continues to expect 2008 revenue of $7.20 billion to $8.00 billion, including TAC. The current consensus estimate is revenue of $1.4 billion for the quarter ending June 30, 2008 and revenue of $5.7 billion for the year ending December 31, 2008, excluding TAC.Broadcom Sees Revenue Above EstimatesBroadcom (BRCM) said during its conference call it expects second quarter revenue of $1.075 billion to $1.125 billion. The current consensus estimate is revenue of $1.03 billion for the quarter ending June 30, 2008.ANADIGICS Guides Above EstimatesANADIGICS (ANAD) said it expects second quarter earnings of $0.16 to $0.17 per share on revenue of $77.0 million to $79.0 million. The current consensus earnings estimate is $0.13 per share on revenue of $73.0 million for the quarter ending June 30, 2008.Peabody Energy Raises GuidancePeabody Energy (BTU) said it expects second q... More About: Season , Earnings , Part , Earning
Economists Even More Gloomy About US Prospects
2008-04-22 06:10:00 CNBC has a story about how economists are gloomy about US economy: Economists Even More Gloomy About US ProspectsBusiness economists are turning pessimistic about the U.S. outlook and increasingly fear economy will slip into a recession in coming months.The National Association for Business Economics said that the 109 members who responded to its quarterly survey were "notably downbeat" about their first-quarter experience and about near-term prospects.For the first time in five years, reports of falling profit margins outnumbered reports of rising margins in the first quarter of 2008......"Seventy percent say they are more pessimistic than three months ago," NABE said.Among other concerns, 66 percent of respondents said they paid more for materials in the first quarter this year, which NABE said was the highest share since 2004. They blamed weakening markets and soaring commodity prices for squeezing profit margins......"Thirty-nine percent of respondents stated that tightening cre... More About: Economy
April Weekly Buzz
2008-04-15 09:08:00 CEOs are pessimistic about the economy (kansascity.com)World Markets Says U.S. Economy in a Recession (bloomberg.com)Mortgage fraud is a growing problem (azcentral.com)4,000 U.K. Real Estate Agents Might Have to Close (bloomberg.com)Financial Meltdown and the Madness of Imperialism (indybay.org)The Housing Crisis and Credit Crunch (rightsideadvisors.com)Citigroup May Need to Sell Assets to Bolster Capital (bloomberg.com)Speculation Growing Fed May Be Done Cutting Rates (cnbc.com)U.K. Banks Need $200 Billion Aid (bloomberg.com)Financial CEOs See Recession on the Way (wsj.com)Recession Forces Teens To Curb Spending (commoncensus blog)Californians' confidence in economy drops to record low (tradingmarkets.com)Industrial properties hit by slump in economy (startribune.com) More About: April , Industry News , Buzz , Weekly
Credit Crisis Could Affect Markets for Decade
2008-04-15 08:25:00 CNBC has a story about how credit crisis affect markets for decade : Credit Crisis Could Affect Markets for DecadeThe credit crisis will affect financial markets for at least a decade and lead to greater regulatory powers for central banks, analysts at JP Morgan said."Market participants and regulators will focus intensely on controlling the risks that were at the core of the crisis," analysts led by Jan Loeys and Margaret Cannella wrote in a note on Monday. These risks include lending standards in mortgages, leverage in the funding of securitized products, and the use of short-term financing for illiquid long-term assets outside of the regulated banking sector....It looks like it takes a generation for the memory to fade and for the same mistakes to be made again. Global equity markets remained extremely cheap on all risk measures even five to six years after the end of the dotcom crash. As a result of these changes in behavior, banks will become bigger, safer and somewhat less pro... More About: Industry News
Credit Crunch Hurts Hedge-Fund Stars
2008-04-14 07:44:00 WSJ: Credit Crunch Hurts Hedge-Fund Stars David Tepper, founder of hedge-fund firm Appaloosa Management LP, saw a negative 17% return last quarter in two funds with more than $6 billion in assets combined as bets on distressed debt went awry, according to fund documents. His Appaloosa Investment and Palomino funds gave up most of that ground in January and February, as declining prices for mortgage-backed bonds and other debt investments caused broad credit-market seizures....Some hedge-fund managers who have fared better this year are saying the wild ride in the markets isn't over. "As we enter the second quarter, the volatility seen in past months does not appear to be in the process of disappearing soon," wrote Philip Falcone, a former head of high-yield trading at Barclays Capital who runs $19 billion hedge-fund firm Harbinger Capital Partners, in a quarter-end letter to his investors. "Rising default rates, consumer struggles, weak labor markets and contraction in manufacturing... More About: Industry News , Mortgage
IMF Issues Gloomy Assessment of Markets
2008-04-09 08:28:00 News Press: IMF Issues Gloomy Assessment of Markets The International Monetary Fund on Tuesday said the global credit crisis, despite some recent improvement, remains a significant threat to economic growth.Despite "unprecedented intervention" by central banks such as the Federal Reserve, "financial markets remain under considerable strain, now compounded" by a slowing economy, low levels of capital at financial companies and widespread efforts to unload debt, the fund said.The U.S. mortgage and credit crises could cause almost $1 trillion in financial losses, the IMF said in an update to its Global Financial Stability Report, with $565 billion of those losses stemming from the residential mortgage market and related securities, and the rest from the commercial real estate, consumer credit and corporate debt markets. That estimate is toward the higher end of estimates by many Wall Street economists, who have pegged the costs of the residential mortgage meltdown at $400 billion to $6... More About: Economy , Investment Bank
UPS Cuts Outlook on Lower Volume and Fuel Costs
2008-04-08 16:52:00 CNBC has a story about UPS cutting their outlook : UPS Cuts Outlook on Lower Volume and Fuel CostsUnited Parcel Service, the world's largest shipping carrier, cut its first-quarter profit guidance Tuesday, citing lower volume and higher fuel costs.The company said it now expects earnings per share of 86 cents or 87 cents. Previously, the company said it expected first quarter profit between 94 cents and 98 cents per share.Analysts polled by Thomson Financial were expecting earnings of 93 cents per share. UPS shares fell about 4 percent in electronic after-hours trading.The company said lower volume trends from February continued through March, making it impossible to meet its prior guidance.Atlanta-based UPS said a shift away from premium products and higher fuel costs also contributed to the guidance cut.Weaker dollar has lead to higher inflation affecting oil prices. The Federal Reserve faces a dilemma now as to low interest rates to save banks from imploding and stimulating the ... More About: Oil
Beware These Toxic Stocks
2008-04-08 16:26:00 BusinessWeek has an interesting story about Toxic Stocks : Beware These 'Toxic' Stocks Bullish noises for the market abound. Fed Chairman Ben Bernanke makes it clear that he's prepared to pull out all the stops to prevent economic collapse, and Treasury Secretary Henry Paulson is talking up broad investor-friendly reforms for market regulators. And, while still behind the fiscal curve, Congress is finally recognizing that emergency measures are needed to help alleviate homeowners' pain and to help prevent a financial catastrophe. With the close of a dismal first quarter, there hangs a faint whiff of optimism in the air over Wall Street. But a warning to investors ready to plunge into the market: Beware of land mines. Even if you think you know perfectly well which stocks are safe, the current market remains a beehive of hazards. Watch out, first of all, for "toxic" stocks that may appear enticing now, but could poison your portfolio at this critical stage of the market. In inve... More About: Stock Picks , Short Selling
US Home Prices In 2009
2008-04-08 10:26:00 Bloomberg has a story about Greenspan's take on US home prices: Greenspan Says U.S. Home Prices May Stabilize in 2009Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end well before early next year as the number of houses on the market diminishes, aiding an economic rebound. It will not be until early 2009 that we will get close to having eliminated most of this home inventory, Greenspan told a conference in Tokyo today sponsored by Deutsche Bank AG and co-hosted by Bloomberg LP. But it is very likely that home prices will stabilize well before that. Greenspan added that the extent of damage stemming from the collapse of the subprime-mortgage market won't be known for months. He described the credit crisis as the worst in 50 years, echoing the assessment of International Monetary Fund economists. Once the markets start to stabilize, especially if the real economies don't go into a severe recession, then we can expect a recovery to b... More About: Real Estate
How 200 DMA Makes A Difference
2008-04-08 03:44:00 By TradingMarkets ResearchUp 10% or more in the past few days may be a great way to start the week, but moves like that can be great ways to start a reversal, as well.We examined millions and millions of simulated stock trades between 1995 and 2007 with the goal of better understanding short term stock behavior. Is it better to buy breakouts or pullbacks? Is it better to buy a stock that has rallied over the past few days or a stock that has fallen for the past several sessions? Which is truly more bullish: stocks that are making higher highs or stocks that are making lower lows?What we found out may surprise you. Most importantly, we found out that context is key. Stocks trading above the 200-day moving average tend to act very differently from stocks that are trading below the 200-day moving average. In fact, just about everything that can be said about stocks should be filtered through this one primary lens: is the stock in question above or below the 200-day moving average?We be... More About: Technical Analysis , Difference
Weekend Webinar
2008-04-07 07:37:00 Interesting technical analysis by Michael Oscar. More About: Video , Weekend , Technical Analysis , Webinar
When Psychology Changes, News Changes
More articles from this author:2008-04-07 05:36:00 Elliotwave blog has a story about how when psychology changes, news changes: When Psychology Changes, News Changes When collective psychology changes, coverage of the news changes with it.I realize how that statement can be understood in at least two ways, so let's get specific. Am I talking about "changes" ina) how news will be covered, orb) the version of news that has been covered already?My answer is: Both. Which is to say, psychology can and often does change everything. In the case of changing the version of news that has been covered already, the most obvious recent example is the Federal Reserve's bailout of Bear Stearns, which was engineered during the weekend of March 15-16.You may remember some of the particulars from the news at that time -- the sense of fear was palpable, as print and broadcast media were full of stories that speculated about which big bank "might fail next" and "how much worse this will get." Bear Stearns was so reckless in its subprime lending that ... 1, 2, 3, 4, 5, 6, 7 |
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